Floating Solar Emerges as Key Player in Southeast Asia’s Clean Energy Future

Southeast Asia is poised to make solar photovoltaic (PV) capacity additions a central element of its energy future, with floating installations expected to play a crucial role. According to research by Rystad Energy, Southeast Asia is projected to contribute 10% of the region’s total solar capacity by 2030, encompassing ground-mounted, rooftop, and floating PV installations. Countries like the Philippines, Indonesia, and Thailand are well-positioned to lead this trend, utilizing floating PV to enhance clean energy generation capacity.

A significant challenge for solar developers in the region is addressing land rights, given the predominant use of available land for agriculture. With a scarcity of suitable sites for solar farms, floating PV has emerged as a viable solution, making use of bodies of water near agricultural areas. This not only avoids land access conflicts but also offers a potential model for other countries facing similar issues.

Currently, operational floating PV projects in Southeast Asia total around 500 MW, with an anticipated addition of 300 MW in early 2024, according to Rystad Energy’s data. The Cirata floating PV project in West Java, Indonesia, commissioned in November 2023, stands out as the largest in Southeast Asia, surpassing even those in mainland China and Taiwan.

Floating PVs are considered a game-changer for the region, maximizing solar resources and addressing limited land availability. The modular design of floating PVs allows integration with existing hydropower dams, opening opportunities for hydropower-rich nations like Laos, Thailand, and Indonesia. Additionally, as land rights pose a significant obstacle for solar developers in Southeast Asia, where much of the land is used for agriculture, floating PVs offer a solution for coexistence with agriculture.

In Thailand, companies are adopting floating PVs through private power purchase agreements (PPAs), similar to rooftop solar leasing. This approach fosters a symbiotic relationship, enabling landowners to power their businesses with clean energy while avoiding disputes between solar developers and farmers.

Southeast Asia’s success with floating PVs, particularly in Thailand, sets a precedent for navigating the delicate balance between agricultural needs and expanding renewable energy infrastructure. Moreover, as a significant portion of the region is covered by dense rainforests, floating PVs provide an opportunity to increase renewable energy generation without deforestation.

Indonesia, the Philippines, and Thailand are expected to lead the region’s push into floating solar. The Philippines, being an archipelago, has numerous inland lakes suitable for floating PV, with plans for substantial capacity on Laguna Lake. ACEN, a Philippines-based company, aims to become the top floating PV developer in Southeast Asia, with a 1 GW project on Laguna Lake and a 200 MW project in Rizal province.

Indonesia, with its extensive use of hydropower, plans a 1.8 GW floating PV project at the Duriangkang reservoir in Batam. The development of floating PV projects in Indonesia is expected to accelerate, given temporary reductions in local content requirements for solar PV until 2025. This aligns with the nation’s ambition to increase solar PV capacity, with its first PV manufacturing plant expected to come online in 2025.